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China prohibits new capacity in steel sector in 2020

• Tuesday, January 14, 2020
• Source:ferro-alloys.com

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• Keywords:China new capacity steel sector

[Ferro-Alloys.com] New capacity will be strictly prohibited in the steel sector in 2020, said the China Iron and Steel Industry Association (CISA) Monday.

 

The policy is a step to consolidate the progress of the supply-side structural reform, according to the CISA.

 

Profits of key steel enterprises in 2019 were expected to reach 180 billion yuan (about 26 billion U.S. dollars) after suffering a loss of 84.7 billion yuan in 2015. The asset-liability ratio was decreased by 7.5 percentage points.

 

The CISA plans to completely eliminate out-of-date technology such as using medium frequency furnaces to produce stainless steel, tools and molds by June 2020.

 

The association also urged solutions to issues such as the hike of the iron ore price and growing pressure from environmental protection.(Xinhua)

 

 

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• [Editor:kangmingfei]